Q: Please comment on Q results and going forward.Txs for U usual great services & views
5i Research Answer:
Funds from operations FFO were 25c, up 10.4% from last year. Net operating income NOI was up 12.1% in Canada and 8.9% in Europe. Rental income rose 17%. Occupancy slipped 1.7 points to 97.2%. Debt to assets remains very acceptable at 35%. Average rents rose 2.8%. Ongoing development continues, with 2.8M sq feet of development projects. There was an executive shuffle, with a new CEO moving in and the former CEO stepping down to focus on Dream's US portfolio. We do not know Mr. Sannikov, but he is the current president and chief operating officer, so as far as transitions go this should be relatively smooth. We see this as a neutral event and the results overall look fine to us. Payout ratio on operating cash flow was very low, at 45%.